Nevada Woman Sentenced for $3.7M Art Insurance Finance Fraud Scheme
Tonja Van Roy, a former insurance agency operator based in Northridge, California, was sentenced to 50 months in federal prison for defrauding a lender of $3.7 million through fraudulent fine art insurance policy applications. She used her expertise in the insurance industry to submit bogus finance agreements to AFCO Credit Corp., a premium finance provider, claiming to finance insurance policies for art galleries that did not exist. Van Roy fabricated insurance policy numbers and forged electronic signatures to secure loans, which she then used to fund personal expenses including credit card payments. When loan repayments came due, she continuously submitted new fraudulent finance agreements to keep the scheme going.
This case highlights risks within the insurance premium financing sector, particularly the potential for insider fraud leveraging industry knowledge to manipulate financial transactions for personal gain. The investigation was conducted by Homeland Security Investigations and the California Department of Insurance, underscoring the role of regulatory bodies and federal agencies in monitoring insurance-related financial crimes.
The sentencing was determined by the United States District Court in Los Angeles, emphasizing judicial actions against complex financial fraud involving insurance products. Van Roy was also ordered to pay nearly $1.9 million in restitution, reflecting efforts to recover defrauded funds. This case serves as a reminder for enhanced compliance measures and vigilant risk management within insurance agencies and premium finance providers to prevent similar fraudulent activities.
The prosecution was handled by the Major Frauds Section of the U.S. Attorney’s Office, illustrating the coordination between various federal entities to uphold industry integrity and protect lender interests. Industry stakeholders should consider this incident as a prompt to review internal controls and reinforce due diligence procedures concerning loan applications related to insurance products. The use of forged documentation in insurance premium finance fraud presents significant regulatory and operational challenges requiring ongoing attention.